Homeowners Insurance

The Coastal Risk impeding Staten Islanders, Brooklynites, and our other U.S. oceanic communities.  Like insurance, we need FEMA to help our A+ rated carriers, particularly those admitted and approved in New York, to make coastal risk homeowners insurance more accessible.  In working for a well known carrier, it made me disappointed seeing the elderly, who were with a well known carrier for 40 years, and never made a claim before, be informed that they could no longer be covered on their homeowners insurance, because their house was under 1,000 feet from the water.  It not only impacted their placement of homeowners, but they were adversely affected on their car insurance from their losing their homeowners insurance and no longer carrying the multi-policy discount.  Further, if the homeowner could only find a new homeowner?s carrier that was a non-admitted carrier to New York State, their umbrella carrier would not accept the new underlying risk.  However, not many admitted carriers are able to continue this coastal risk, and the market is becoming even slimmer.

Replacement Cost Coverage Realtors have a different conception of what it is, and when they are viewing the homeowner?s coverage with a new purchaser of a house, they should be educated that it is not the market value of the house that is being insured, but the cost to rebuild the structure of the house itself.  Therefore, to stipulate an inflated amount of dwelling coverage is not only making the homeowner pay out more in premium, in the event of a total loss, if the claim comes out to being a lesser amount, say $300,000 claim, with a policy containing $500,000 in dwelling limits, the homeowner over paid in his premium amounts.   Most reputable carriers help out by offering a buffer of 20% to 25% with no additional premium.

Mold and Fungus Coverage New York has implemented the requirement of carriers to cover up to as much as $20,000 in mold and fungus coverage, given that Staten Island is a natural sponge for infiltration.  With the level of Nor?Easter rains skyrocketing in our borough, an innocent homeowner can receive hidden damages that could result in the need to replace the security beams of their house or incur a collapse, yet be told that their claim was as a result of mold and fungus that they could not see, and previously been offered no coverage.

Moving coverage  Your personal property is covered anywhere in the world, but that coverage instantly becomes limited once you put these items in a truck, with the intent of moving it to another location.  Your personal property is generally covered on an all risk basis when insured by an A+ rated homeowner?s carrier, but upon a move, the coverage changes to being on a named peril basis/must be a listed peril that causes the damage.  The most common accidental breakage during a move is when the truck causes the items to rollover and damage, and other specifications are excluded.

Long Term Care Insurance  Medicaid costs crippling our economy, with the costs of nursing home averaging $75,000 per year.  Like all Americans, if we secured long term care insurance for mom, who is 72 years old today with advanced Alzheimer?s disease, was healthier just 7 years ago and before being ?on claim? it would have cost us $25,000 per year?yet the need for this insurance at the time just seemed so unrealistic?to think the numbers, $72,000 per year for the nursing home, minus the $25,000 for the long term care annual premium, would have saved our family $47,000 each year had we known.

Flood Insurance

Nor-Easter Rains Staten Islanders should be made aware that straight rain as such, is more of a flood insurance claim.  Homeowners is designed to cover the ?wind driven by the rain?, but if there is no wind involved, a carrier could ascertain it being a flood claim, but if the customer does not have the flood policy, may be without any coverage.  Most A+ rated homeowners carriers will try to meet the customer half-way, by offering a small settlement on a percentage of their claim being caused by windstorm.  However, with an aging roof, such a provision could be removed, or in some instances a flood insurance policy could offer more support depending on the specific situation, and how much was related to roof maintenance.

Back up of Sewers and Drains Homeowners need to understand what this coverage is, and why it is limited.  Most homeowner?s carriers that even offer it, only give as much as $5,000 in coverage, with some A+ rated carriers giving up to $10,000 in limits.  However, the limitation is because of what a back-up of a sewer or drain really is?it?s ground water where Staten Island having one of the highest elevations of the Northeastern shoreline having Todt Hill, whose ?ground water? on a regular basis drains into Dongan Hills Valley!  This continuous ground water is caused by massive flooding, and this is where the flood insurance comes into play.  Hence, homeowners carriers extend their limits, but can only do so to a point as a separate flood insurance policy should have been purchased.  Also, if massive flooding is the caveat that causes the sewer to back up, this is once again, a flood claim, not homeowners.

Mudslides ? coverage is made available by flood insurance, not homeowners insurance, yet most Staten Islanders believe they are not at risk.  If we receive the 20 foot storm surges as mentioned in the 02/10/2009 article in the Staten Island Advance covering the South Shore line, damages could reach the North Shore of Staten Island, with Category 1 - Hurricane Winds, exceeding 74 miles per hour, that could cause a horrific mudslide effect on Todt Hill, devastating not the homeowners of our prominent community, but extended to Richmond Road and the valley of Dongan Hills!  With the houses resting upon the side of a cliff, hanging over Richmond Road, this homeowner should revisit the question, ?Do I need flood insurance if I live safely up on Todt Hill?  I have the elevation?but is the a house above me that will be draining water down my way due to the amount of paving added, with little rain to be absorbed into the ground rushing downward going to damage my house??  If so, am I covered by my homeowners? policy?